The sudden downturn in the US subprime mortgage market claimed more victims on Thursday when HSBC ousted two of its most senior North American executives.

FT View by Peter Thal Larsen

Mr Mehta’s departure was widely expected after HSBC’s embarrassing profits warning earlier this month triggered by a rise in bad debt in its US mortgage book.

The appointment of Douglas Flint as non executive chairman of HSBC Finance Corporation is a further sign that the bank’s top executives are taking a hands-on approach.

The banking group, which this month shocked investors with the first profit warning in its modern history, said Bobby Mehta, chief executive of its North American operations, and Sandy Derickson, head of the bank’s US retail operations, were both stepping down.